SEC Says Mutual Fund Abuse Broader Than Expected

[Spazito]

WASHINGTON (Reuters) - The top U.S. markets regulator told Congress on Thursday that abusive trading in mutual fund shares is more widespread than once expected, even as officials prepared to charge a top mutual fund executive.



Securities and Exchange Commission (news - web sites) Chairman William Donaldson said SEC investigators are unearthing widespread problems with market timing and late trading abuses.


"We believe, as a result of a net that we've cast, that the market timing, late trading issues are quite widespread ... It is more widespread than we originally anticipated," he said.

<snip>

Spitzer, who has led the way in the fast-moving mutual fund investigations, criticized the SEC for being slow to respond to the scandal.

more

http://story.news.yahoo.com/news?tmpl=story&cid=578&ncid=578&e=8&u=/nm/20031030/ts_nm/congress_donaldson_dc

[jiacinto]

1. I own mutual funds

and am concerned.

[Spazito]

3. It has been devastating for many, including seniors on fixed incomes

I feel very sorry for all who have or had mutual funds.

[jiacinto]

7. Most bond funds should be okay

They pay monthly dividends. Bonds have been doing well during the recent bear market.

[Spazito]

9. Very true, I own bonds and treasury bills, Canadian ones, and they

have served me very well through the last few rough years.

[ThorsteinVeblen]

5. Nothing you can do.

But swallow it. Your concern is meaningless. You are completely powerless. It's the way it has always been and the way it always will be. The people who "represent" your interests are bought and paid for by the same people who are running the mutual funds. The vote you register every four years will have no impact and may be just changed electronically if it does not conform to the decisions of those "counting" the votes. Get used to it.

[Zhade]

2. When you have NO expectations, of course MASSIVE FRAUD surprises you!

NT!

[The Backlash Cometh]

4. I saw it coming.

Not surprised, but certainly glad to hear that the SEC is cleaning house.

[ThorsteinVeblen]

6. The SEC is NOT cleaning house

They are bought and paid for. Wall Street owns the Whitehouse. Elliot Spitzer is the only, if dull and fleeting, hope.

[Military Brat]

8. Miracle Worker

I read the article on Spitzer's fight against Wall Street in The New Yorker. What he accomplished was nothing short of miraculous, considering what he was up against. The man does not give up when it comes to pursuing graft and corruption.

Spitzer for U.S. Attorney General! Spitzer as independent counsel to find the leaker!

[nothingshocksmeanymore]

10. I agree...and welcome to DU

[Voltaire99]

11. Pay no attention to that mutual fund behind the curtain!

As Karl Rove will tell you, the real menace facing America today is...gay marriage!

[hatrack]

12. What? Fraud, theft and deception in the American financial sector?

NO WAY!

Then again, I haven't seen Harvey Pitt around for a while - does anybody know where he is? Consulting for Putnam, perhaps?

[stickdog]

13. This was inevitable.

The funds of the rich bilking the retirement funds of the middle class.

What a surprise.